DraftKings to enable crypto-to-cash deposits in four U.S. states

DraftKings has announced that it will enable crypto-to-cash deposits in four states across the United States. In its statement, the betting platform said it will roll out a new feature that will allow all users in the US to use digital assets converted to cash to fund their online betting accounts.

The statement was corroborated at a Massachusetts Gaming Commission (GMC) meeting this week. The meeting was headed by the Chief of the Division of Sports Wagering, Carrie Torrisi, who mentioned that DraftKings has been given the all clear to introduce the new deposit source in the four states over the coming weeks. Chair Jordan Maynard noted that the states involved would include Illinois, Kentucky, New Hampshire, and Vermont.

DraftKings to enable new deposit feature in four states

According to Torrisi, the state of Massachusetts, where DraftKings operates out of, would have been part of the new deposit rollout had the MGC not changed the rules to ban crypto converted to cash as a permissible funding source for sports betting accounts. The new rule took effect on December 19, 2025, after a review and staff recommendation. The restriction is the same as its credit card restrictions, banning crypto converted to cash and deposited in accounts in other jurisdictions.

Although digital assets are not widely used in license, state-regulated sports betting in the United States, some states allow it. For instance, Wyoming permitted crypto as a wagering funding method in 2021, becoming an early adopter and one of the first to approve the funding source. In addition, Colorado and Virginia’s gaming regulators began allowing crypto conversions for deposits in 2022. DraftKings has yet to release any additional statement in this regard.

Speaking about the new development, Kentucky Horse Racing & Gaming Corporation Director of Sports Wagering Hannah Simms mentioned that Kentucky’s sports wagering regulations have considered the use of digital assets. She added that sports wagers can be made using the different forms of payment approved by the commission, including cash equivalents converted to cash, which covers assets like digital, crypto, and virtual currencies.

She added that KHRG staff worked with DraftKings to evaluate their proposal, which included product testing, review of vendors involved, and confirmation that it had undergone and passed the appropriate testing. Following that process, KHRG approved the method for use in Kentucky, noting that it satisfies the regulatory requirements of the state. The sentiment was echoed by Hannah Chauvin, the Director of Communications and Legal Affairs of the Vermont Department of Liquor and Lottery.

States move to outlaw credit cards as a funding source

In contrast, the Massachusetts regulators approved the request to grant DraftKings a temporary waiver to implement the technology and test the feature, which includes a method of separating crypto-source funds, but commissioners were still concerned at a December meeting. “We believe, basically, crypto is not ready for primetime,” said Caitlin Monahan, director of the MGC’s Investigations and Enforcement Bureau (IEB).

Monahan mentioned that at this time, the commission does not think it is a funding source that is ready to be incorporated. She also cited concerns over the lack of regulations around the use of digital assets, as well as fears of money laundering. While she mentioned that no licensed sportsbook in the state accepted converted crypto to cash as a funding method, DraftKings Director Pete Harrington mentioned that it was only exploring converted crypto and not the assets directly.

DraftKings is choosing to open up deposits to crypto conversion months after banning credit cards for sports wagering deposits. Several states have banned the use of credit cards for online sports betting, citing concerns over gambling issues and financial harms. They include Iowa, New Hampshire, Rhode Island, Vermont, and Tennessee. The Illinois Gaming Board also recently approved a regulation to outlaw the use of credit cards for sports wagering funding.

If you're reading this, you’re already ahead. Stay there with our newsletter.